As neighboring states, Kentucky and Tennessee share a lot of similarities, but also a lot of differences — especially when it comes to car insurance. Car insurance laws and regulations are set by the state, meaning rates and requirements vary once you cross state lines. Properties in areas that straddle that line — such as Fort Campbell — should know which state they fall in to for guidance on what requirements they must follow as well as what car insurance rates to expect.
Below are the similarities and differences between Kentucky and Tennessee regulations.
Kentucky Auto Insurance Laws
Kentucky's minimum auto insurance requirements are:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $10,000 in property damage liability
- $10,000 in personal injury protection
Tennessee Auto Insurance Laws
Tennessee's minimum auto insurance requirements are:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability
- $25,000 in uninsured motorist bodily injury per person
- $50,000 in uninsured motorist bodily injury per accident
The Difference Between A Fault State And A No-Fault State
Another difference between Tennessee and Kentucky auto insurance laws concerns how wrecks are handled. Most states are split up into two groups: fault states or no-fault states. Kentucky is a no-fault state when it comes to car insurance while Tennessee is a fault state.
This means that in Tennessee, drivers who cause an accident is responsible for covering the damages caused to both themselves and the other driver and passengers. In Kentucky, the drivers in a wreck each are responsible for their own vehicle and medical expenses. This is in part responsible for the difference between the auto insurance requirements in each state.
In Tennessee, you are typically required to carry uninsured/underinsured motorist coverage. Since Tennessee is a fault state where the other driver is responsible, an accident caused by an uninsured driver can leave both drivers without coverage. Uninsured motorist coverage helps compensates for damages in circumstances such as this.
Kentucky doesn't have this requirement since fault does not have as heavy an impact when it comes to accidents and insurance. Instead the state requires personal injury protection, which provides medical expense coverage for the driver and their passengers after an accident. Since the driver is responsible for covering these expenses in Kentucky, this insurance guarantees the car's occupants will receive the care they need.
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